neil: if republicans can get the stop spending message out, tonight. we think we found the guy who can. get ready. things are about to get loud. neil: welcome i am neil cavuto, it is probably a under statement to say that republicans have a pr problem, viewed as gang who can't shoot straight or come up with a clear response to a president they say is running rough shod, they keep asking the same questions, why do you keep

caving on taxes? why do you do nothing about spending? how is it, a party that lost its bid for the white house, acts like all of a sudden it lost the house? you didn't. stop behaving like you did. after all, voters returned aren't to body that sets all spending issues, why the heck are republicans on defense on spending issues? what happened to their backbone? more to the point, what happened to their soul? tonight, meet the folks who have been brought in to perform a exorcism on the right. they are michelle field, and alan west, you know their faces, get ready for them to get in liberal's faces, by waking up some very young voters, they are launching a web show, called, next generation. and if you are young, hot and bothered, they want to get you jazzed, angry and involved,

welcome you to both. alan west, unleash now. from congressional jobs and duties, what do you want to do here? >> neil, i think post -- most important thing, being father of two teenage daughters, take my insights on the issues and perspective, and take those issues to next generation, and let know how important it is to stand up for their future, not just young people but grandparents and parents. so we can make sure we're not first generation, that leaves less for our subsequent generations. neil: young people, voted, 7 out of 10 for barack obama, you have an uphill fight ahead. >> we do, but i think that the web site, and the new show will change things, if you watch news, so many politics who talk about current evens and way it

affects older americans, social security, medicare, but no one is talking -- >> were you pointing to alan what you said older. >> i think she did, yeah. neil: i wanted you to know thatta alan. >> we're going to inherit all this debt, we're talking about spending, and spending, but no one comes to us and says how do you feel? we will have to pay for this, and shoulder it i hope i can be a voice for the next generation, that is my plan, i am excited i old, wise and experimented alan west. >> i don't know if that was a a compliment. neil: she did the same thing here with me. but alan you know how they play the game and avoid tough decisions, both parties, you are critical in both parties in the way they see their responsibilities, you got a loss

of flack, some would argue, you lost the campaign because of that you would not ceed your principals because of, that it is a reminder what happened to your party, it seems they forgot what got them there. >> you bring up a great point, one of the lessons my parents taught me, i carry on to my generation, and hopefully instill in next, my two daughters, the man must stand for something or he will fall for anything, that is the frustration, when you see someone as myself, that knows where the bodies are buried, i can team up with someone like beautiful and talented michelle fields, notice i did not put her down. >> file bad now. >> we can take the message to young people, and get them to get engaged to understand, taking heat is no big deal for me, but it is important we make

sure that great nation, that that which makes it great, the economic opportunities, and growth, and the expansion of wealth, not the demonizing of people able to have the opportunity to do well, we have to make sure they are passed on. that is what we'll talk about. neil: you do have on the web it draws more young people than any other demographic group, michelle to be complimented. i think with this stuff it is treating our audience with respect, whether the web, or cable or broadcast, they are not idiots. and i think that, it is important, whatever you do, you don't need any nickel and dime advice from me, but focus on the nickel and dimes and how much we're spending and where that money is coming from or not coming from, how do you do that? >> i think a lot of young people

are outraged right now, looking at occupy wall street, how upset people are, so that outrage is there that apathy. neil: their rage is built on anger, that they a government not doing enough for them, how do you counter that, look you should not ask what the government can do for you, how do you address that? >> we're hoping to bring a lot of young folks in who understand we're trying to empower them, hear their voice, and share our point of view of what solutions should be. so, yeah they have outrage, but the thing is, they don't know the solution, they don't know how to fix the problem. we're hoping to provide some examples of solutions. >> that is one thing we'll do in the show, neil we'll look at next generation, entrepreneurs, and start up businesses and talk about those impediments of them starts the business in the economic environment, tax

policy, regulatory policy, the failing monetary policy, but talk in simple facts and terms they can understand. we'll feature those young men and women out there in military, that are making sure we can this have great nation, we'll call them the next generation guardians, that is how we'll reach out and touch people, and get them to understand they have to pay attend shown to the policies out of washington, d.c. neil: quick thoughts on very hot button issues, one is that republican should hold tight on this debt ceiling. and risk shutting government down if president does not give on to spending, yes or no? >> i have to say yes on that, because if we don't start to self-discipline. if we do not start to prioritize, spending, look, neil, letter from the director was sense on house, saying that obama administration will miss the deadline for sending a budget over that deadline february 4 is the same day we

will launching next generation today show. we will not miss it. neil: what time are you on? >> we'

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neil: do any of you know nate silver? does it ring a bell? nate is the guy whose 538 column due into a darn near ocult. it is polling slang, nate was a guy, who painfully researched every state, and nook and cranny

to assess which candidate was closer to, in this case, the election rally votes needed to become president, he got the election right, down to final electoral vote. he made a mockery of those invisible romney voters. prove could them wrong, suddenly of it nate the great, and a campaign stat star of born, a polling jeanious genius. he leveraged that brand with issues that might or might not have anything to do with that brand, sort of like me some moving into the health caresphere. republicans say this confirms how clueless the president is, nate silver writing, how right the president is, mr. numbers explains if you do get run away

spending on medicare, social security, and medicaid under control, spending is suddenly not a problem. to david stockman who is not quite convinced, ronald reagan former budget director, joining he now, we would like to spend extra time with david, like a sponge i try to soak in all his smarts, what do you make of what nate said. >> he has a lot of statistics, but it does not capture all of the things by any means, i say no, i want to re reference backo what ronald reagan phased in 1981, and where we've drifted for 30 years since, there was 21.2% of gdp on spending side left by carter, what the republicans cannot understand that is reagan did not reduce

that. he left was on -- >> as a percentage. >> he left, it was nearly 22% of gdp, big government was bigger, since then it has drifted even much higher, to 24, 25 percent of gdp, the problem is defense, it is medical programs, it is really social insurance. nonmeans tested, social security, medicare, 1.5 trillion going to millions of people who do not need it, should be cutback or cut off. he didn't talk about any of that. second, when ronald reagan came in revenues were 1 19.5% of gdp, that was carter's tax level, he cut taxes a little bit, but 2012, they were down to 16%, both parties were cutting taxes while they let spending go up,

so now we have lowest tax burden in last 50 years and highest level of spending we've seen since world war ii. neil: rather than raise revenues. >> you have to do more. neil: raise taxes more, on more people. >> i don't' to get into taxes, but yes, we need a new tax, you cannot get it out of income tax, it is clear we tapped that out, we need a consumption tax this country over spends, under saves, under invests, we're living beyond our means issue we're living in a fairytale, we have to pay our bills. neil: europe has value added tax, most countries do. they are not flying on all cylinders. >> everyone has their problem. if we fund 20% of gdprkz, i think we can get spending down to, but i tell you what it will take in a moment, it will horrify everyone on capitol hill, to get it, i it to 20%, we

to have a consumption tax of large magnitude, stop taxing payroll, that is payroll tax we have highest labor cost in world then we add 15%, my answer reduce or eliminate payroll tax, tax consumption not work, tax spends side of the economy not production company. neil: what bobby dwind els gends doing -- is doing, is that regressive? >> well there is that argument, but the problem is you cannot collect an income tax in the global economy that we're in today, the big corporations, simply hire lobbyists and lawyers.

neil: tax out of woodwork. >> only thing we can tax is sales retail at point of sales. >> would it inhibbive sales. >> sure but we didn't spend our way to prosperity. neil: you are not saying either or. >> that is one. neil: but you would not be -- replace the federal income tax with the consumetion tax. >> i would like replace payroll tax with the consumption tax, because, the payroll tax is what is killing jobs. neil: you know low that goes. once you get a tax going it goes up and up. >> that relates to other side, social chunks is insurance is s there are no trust funds just confetti paper we'll have to lefto taxpayers some day, social insurance is a huge myth.

i would means fest it, cuts by a couple00 billion, i would reduce the number of people who are av and reduce that number. we're broke. when you hear -- >> how do you tell people that i've paid 40 years into social security. >> all be -- everyone who is taking it right now after 30 years dnot pay for what they are getting, the payroll tax of never close to what would fund on an -- >> what do you get, it takes three years for you to get everything back. >> 3 or 4, so i'm saying, if we get rid of socia sober social is insurance,defense, go back to ice ep loweeisenhower minimum

we could revert back. republicans don't want to touch that, democrats don't want to touch it. hero are. >> and then have you obama saying we need 100 billion of green energy that is pure boondoggle. we don't need green engineers, all that nutty stuff, for solar, and electric cars. neil: what would david have the government do? >> government, should provide for defense, and foreign policy that is noninterventionist and stays out of the affairs of the rest of the world. neil: you are like a libertarian. >> in that regard i am, look at last 40 years it has ban a

fiasco, vietnam, you have to be kidding me. and it needs to be shrunk, and social chunks, supported -- social insurance, is which are vidother side of the spending problem. if we don't get at military industry complex, and social insurance we're kidding ourselves, the deficits will grow. neil: then what. i don't see anything being done. >> i think that is why i say the budget is a doomsday machine, we face a permanent fiscal cliff of 8% gdp gap. i see a constant political battle, every year there will be a deb debt ceiling crisis. neil: what do you think of the president? >> you know you can't have a dictate adictatorship, you havea

bad blow up in financial markets. neil: is that coming? >> i do think so, a blame bernanke more than anybody else for the mess, when he said you can borrow money for 3 years to pay federal deficit at 30 basis points that is a rounding error to congress ha is zero, why is anyone going to stand up to social insurance, military industrial complex, the subsidies this bill, 60 billion boondoggle they passed for relief, who'll stand up to that stuff, when the great man, and said i'll take care of it, i'll keep interest at rock bottom. i'll print the money, i'll buy the bond. until we have a house cleaning in the fed, until we get rid of these loon ticks who want to have interest rates at zie zero nothing is going to happen on the budget. neil: all right, well, you have

hit my appetite. but, good stuff to think about. david stockman. one of the smartest budget guys i have ever known, but i have not known that many. very good, thank you. >> thank you. neil: dennis spent a lot of money on a shower curtain, washington flushes away $2 20,000 on a bathroom with a restring rate or, and does not get a trickle of grief, good grief. plan plan

>> i didn't believe it, things got bad, i was shocked to find out to wind up here, i don't believe i deserve to be mere. but i think you know, at bottom

it is temporary. neil: former tyco boss dennis kozloswki speaking to me after getting locked up. using company cash to decorate his lavish apartment. where he had that 6,000-dollar shower curtain, you do not pay for that. but you took a bath on this fancy bathroom. releasing pictures. taxpayers coughing up $2 20,000. to renovate -- secretary's office, nobody got in trouble for, that our own liz claiborne on the double standard. >> did sui that tile work very nice. $2 22,000 bathroom. a hundred square fight.

neil: we paid for it. >> the taxpayers did. once again, a journalist, to get this information, see that cabinetry that cost $2 000. 26,000 for sink, there are other things -- that is a fridge. we showed that, made by subzero, and had custom cabinetry over it, have they not heard of kenmore. neil: that can hold yodels for life. >> i think it was holding moisturizer with caviar in it. that is what it was, fancy pieces, i really like of faucet for 689-dollars there is the toilet, the tissue holder, 65

bucks, this is dirk kempthorne, served from 2006 to 2009. it was approved. but what is interesting about dirk kempthorne, he was known for being conservative with the economy. and economic issues. neil: was is an thoorgmen anotht too he had gone way under budget with his expenses in office and after office, i don't know if this is a case, this is jump change -- chump change in comparison. >> but this is taxpayer dollars. neil: that is what galls me, go after dennis kozlowski if you will on what he spent. that is the crux of his debate. but, this is taxpayer money. >> well, dennis kozlowski paid

back everyone in million dollars everyone in million in finds, and -- 97 million in finds. he was convicted and -- >> who would rubber-stamp this. >> general services, which is landing record. of the u.s. government. was nobody looking, they claim there was water damage, but gale norton, kempthorne's predecessor, you know i know a plumber named tommy who can to this, for a lot less. neil: this is why we have a spending problem. this is part of it. >> taxpayers, alliance president said that the country is broke, this is unacceptable.

this is up in with military buying toil ea toilet seat for s of dollars, we need someone who clips coupons to be in charge of deciding whether a bathroom that size is necessary, that is sour is our money, this is the kind of story had not been for journalists, would not come to light. neil: thank you. when are you going to and. >> we're going to sunday. >> why do you inner view them outside, it is cold. >> we have little space heaters. neil: i always wondered. i would say come inside. liz thank you. and who knew our last line of defense against gun violence was not this guy, not these guys or this guy, no, no, our last line of defense this guy.

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neil: next time you go to the doctor bring your gun license, the president empowered your doctor to ask if you are packing heat, if you are, pass that to uncle sam, idea to screen out potential violent patients, do

not tell that on tour doctor who is losing his patience. that is really, weird, how does this work? >> well, it reminds me of obamacare, which is, it was a bunch of bureaucrats moving into the doctor's office and making requirements or giving us suggestions, that are ludicrous, they have nothing to do with real medical practice, can you imagine me say, i'm not a see a, i say, open your mouth, i check your tongue, then a say, do have you a gun. why is that relevant to what i do, an og/gyn can you imagine. neil: in that environment, a hell of a way to bring it up, i wonder too about what is the motivation? is it to screen out potential

problematic patients? those you are worried about. you are a good judge of character. you can probably detect someone who is a little off, right? the next leap, would be, by the way, are you packing heat? do you have a gun license. >> that is 10 leaps away. millions of people here own guns, and are law abiding, and they are coming to have their blood pressure checked, i can see a situation where a see site rifpsychiatrist is worried whera aggressive, unstable, patient can become violent, they know if they are suicidal they have to report that, they don't need president obama telling them how to do it. neil: let's say that patient you were worried about, and you didn't ask if they have a gun, he goes on a shooting rampage,

and they trace his previous visits, and they say oh, he visited the doctor, and he did not ask him or report it, and then they sue him. >> that is what is wrong with that, if i don't ask if you have a gun, and you shoot someone, years later, it will be traced to me, and i can be sued, i can be sued for not suggestioning that some federal agency or in this case the president is suggesting. neil: this is in in addition to the -- compel doctors to do more than saying how are you doing? this is an odd thing to bring up in a conversation, do you say, i'm compelled to ask you, if you have a gun license, right, that is stupid. >> right, i want to do the flip

side for a second, there should be some questions about people with proven mental health diagnosis. neil: that you puts the oh, us ithe -- onuson you to find it. >> right. but in the case like sandy hook maybe there should be a restrict on someone's mother having free amounts of gun in the house with someone with diagnosis. or in ar aurora colorado that ia very specific -- >> a lot of things that president wants to do, a lot i like, trying to get to source of problem, insight bad characters, here is what i don't like, putting the pressure on my doctor to identify them when he has enough else to deal with. including this entire hold care act. >> i love those, malpractice, and it is ludacris, he is not in the doctor's was on the, in a real doctor's office there is no

situation where i would ask someone if they had a gun. neil: have you violated doctor doctor/client privilege there. >> not if they are a direct threat to themselves or others. neil: but you make that call, if you not make that call then you are line will. you made a bad decision and you go to court. >> once this goes forward, i am getting sued if i did not ask. neil: if you in future, if this decision is borne out by courts, will you ask. >>no, no patient will come back to me if i am that absurd. neil: but it is the law of the land. >> there are a lot of laws of the land we don't follow. i am not asking my patients if they own a gun period, not unless they think they ar a threat. neil: criminals, this is the doctor you want to see, i'm kidding. >> no, who you want to see if you own a gun.

neil: right, have if you have a gun -- about way, this is ridiculous, it is. >> absurd. >> thank you very much. >> they are breaking the law, they are getting a break on tuition. this is legal. what do you think? so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement plans, it helps pick up some of what medicare doesn't pay. and could save you thousands in out-of-pocket costs. to me, relationships matter.

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. >> they are not paying to those who are legal citizens. >> i recent the idea that it describes you know what is taking place. and i also don't think that has to be a party issue. you know, other panelists mentions republican versus democrat, i am interested in the education system, and making it affordable for everyone. >> this is a political move in colorado, the republicans voted a long party lines every year they are trying to pass this. >> what are you saying malia this is not a littl political m? >> i'm saying, is to her point, unfortunately all these issues, which should be discussed under

this idea of america, give me your here and humble is being turned into politics, it is misleading to think that somehow democrats are only ones that make this political, this has not come out of the blue, this has been going on for years, this is not out of the blue, people want -- as much as i don't like what happened in arzante. neil: here is what can it comes down, to do you give up addressing this issue in serious terms at all. do you say, make them all legal, and then we'll deal with any new ones coming in. >> perhaps this is something that supreme court will have to look to. in '882 supreme court ruled that immigrant children who were undocumented were guaranteed to a education. we -- i think that republicans

today could learn a lot from george w. bush's attitude toward immigration. neil: all right, but you don't think that this is a slippery slope. i mean, what you do in colorado, other states pick up, what you do for education today you have to do for a variety of other services as well. then pro you provide for kids, of illegals who cannot be blamed if they came here as infants or were born here, you will not extend to their families as well? >> you know, i would say, when go i to another country, i do not expect them to bend their laws to acome dat to -- accommo. >> i didn't realize you immigrated anywhere. >> when i go, and i regardless of whether i'm immigrating there are not, i do not expect them to bend their laws to accommodate me.

>> they have been here for decades. neil: i think we're misses here is fact that those who use the lflegalsystem to become citizent takes a long time to go through that process, i had an exchange student, who lived with my process who is going through this process we're 8 years into this doing everything that the government requires, he is looking at what is going on, a lot of people getting short cults, some for -- cuts, and wondering what the hell am i busting my hump for trying to do things the right way, i could just stay back in shadows and then i can be come an legal st. ancitizen anyway. >> the question about your slippery slope, i would like get back to, you know i think we're right now having a doing log about a new wave of -- a

dialogue of a new wave of immigration. citizen ship has never been static. neil: i am addressing the logical issue. the people who are following the laws to the letter, and they realize other people are just getting to the front of the line, having done none of that and becoming citizens, you cannot blame them for being upset. >> it is broken. neil: duh . >> i don't think that this point of attack is the way to fix it i think encouraging higher education is the way to go, government wastes so much money on -- >> you are like for drawn up claupwhatever happens.

neil: my question to you is, no one answer made question. that is, to hose who ar those wg everything right, getting shoved to the side for those who are doing everything wrong is, it fair. >> it is not fair. i don't know how to fix it right now. neil: no, you don't. >> thank you very much. neil: ever down one of those fire hour energy drinks, uncle sam is watching high is the one twitching.

neil: this should take the pep out of your step, a new report linking energy drinks to more hospital visits, and possibly to some deaths. is the government about to make it a big problem? your worry with the drinks is what? >> you know nature's energy drink here is water. these drinks are dangerous cocktails of questionable ingredients. they have not been tested on kids, dangerous herbs, and sugar and caffeine. these are stimulants, they do not belong in the hands of kids, they are over using them we need

to cut back. neil: john, your energy drink? >> well, a lot of things don't belong in kids' hands, alcohol does not, kids eating too much pizza, white flourled to eye huge increase in cancer. there are a lot of things that don't belong in kids' hands moderation is the thing. neil: but your -- wait, wait. i will let you answer that, but yours is a unique type of energy drink, explain it? >> i sold recipe to it, and the company i had, but drink that i had was all natural caffeine, which went with b-vitamins, look there is nothing. neil: rebecca, wait. i want to be clear. what else?

>> i it gave you energy, you take a lot of amino acids, tarrine was a problem, that -- >> it helped with your love life. >> yes. yes. neil: okay. i'll leave it at that. >> i had several. >> not kid appropriate? >> absolutely not. >> rebecca. >> okay, we're talking about some of the ingreed yens, bvitamins, we get this from food, i am talking about new nutrition food, lamb, beans bark s, bananas. kids have no business taking stimulants. neil: what about adults? >> our focus on is kids, i do not recommend energy drinks, i am a food is first gal, there is a big difference between the

size of a adult and a child. neil: okay what about a college student, and a old fart like me. >> plane to keep your energy up -- you see, why we're going, i could what government seem foss say, here is what i worry about an overreaction that it rules this out for everyone, rather than address a certain vulnerable part of the population. >> yeah, you look at energy room visits there are about 20,000 visits, 42% was people taking other stimulants as well, a drug they took with this. this is such a minuscule part of the population, you have a theater their billion energy drink market here in united states alone, these guys are the politicians are getting a lot of money from the lobbyists.

like soda lobbyists refuted bloomberg, what you could not get sugary drinks with food stamps. neil: but you do want to draw the line at young people, 18 or 21? >> first of all, parents need to do their job, and ir eblaine exo kids, they are not allowed to have these drinks, companies can play a role in educates parents on their web site, canada did regulations they limit aim of caffeine, if companies have to reformulate for canada, then send them to u.s. too. neil: canadians are regulating this? they are the calmest people on the planet. >> i just want people to have regular food, water is nature a energy drink.

you can get the things in the beverages from food. nobody should over consume them. neil: thank you very much. our inauguration day coverage. we're there every step of the way. good night.